1. INTEGRATED MARKETING COMMUNICATIONS18
INTEGRATED MARKETING COMMUNICATIONS
Chapter 18 – Integrated Marketing Communications
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

2. Integrated Marketing Communications
Identify the components of the communication process.
Explain the four steps in the AIDA model.
Describe the various integrative communication channels.
Explain the various ways used to allocate the integrated marketing communications (IMC) budget.
Identify marketing metrics used to measure IMC success.
LO1
LO2
LO3
LO4
These are the learning objectives for this chapter.
LO5

3. Coca-Cola
It might seem, for example, that Coca-Cola is such a well-defined brand that its communications would be automatically consistent across marketing channels. But as sales of its iconic Coke and Diet Coke brands have suffered some stagnation in recent this assumption has required some rethinking.
Ask students Do products like Coke and Diet Coke fit into their nutritional lifestyle choice?
Jochen Tack/Alamy

4. Integrated Marketing Communications
Customers
Results
Communication channel
The goal of IMC is to ensure all the various marketing mix elements work together to deliver a consistent message. Therefore, IMC takes the best of each communications medium and combines it to achieve the most effective marketing communications campaign possible.
YouTube link:

5. Communicating with Consumers: The Communication Process
Noise from the environment
Sender
(Firm)
Receiver
(Consumer)
decodes message
Transmitter
encodes
message
Communications
channel
(Media)
New media options fragment communications and make it more difficult and complex to reach the desired target audience.
Ask students: What media do you use on a daily basis?
This should lead to a discussion of new and alternative media.
Marketers must understand how the communication process works and identify possible communication breakdowns.
Group activity: Play the game of telephone. Start with a short message, verbally pass it around the room, and see what emerges.
Sample phrase: I caught the train heading for Richmond but went to Richland instead.
Feedback

6. How Consumers Perceive Communication
Receivers decode messages differently
Senders adjust messages according to the medium and receivers’ traits
Marketers must remember that they do not have control over the decoding process, because each receiver decodes the message in his or her own way.
Group activity: Identify advertisements or brand images that often result in different reactions from different consumers (e.g., ads for beer, cigarettes, and personal care products).
Why do these ads generate differing responses?
For example, a cigarette ad for smokers may arouse smokers and induce the desire for a cigarette. For former smokers it may induce a sense of loss. For non-smokers it may not illicit any emotion. Etc.  
©Stockdisc/Getty Images

7. Decoding the Message
How does the advertiser help the receiver decode this as a breakfast food
Ask students how this ad handles the challenges of decoding the fact that this is a breakfast food and not a lunch/dinner which is what SmartOnes is known for.
Courtesy HJ Heinz Company

8. The AIDA Model Awareness Interest Desire Action Think Feel Do
The AIDA model provides a basis for understanding how marketing communications works.
Ask students to pick a product. The decision to buy this product must be somewhat complex. Then walk them through AIDA using the accompanying slides.
Feel Do

9. Where is this ad in the AIDA model?
Dogs and babies are very good at attracting awareness or advertisements.
©2008 KCWW Reprinted with Permission

10. Awareness Senders first must gain the attention
A multichannel approach increases the likelihood the message will be received
Courtesy Peapod
Discuss the now-famous Joe Camel study, which found a majority of three-year-old children were aware of Joe Camel, the spokes character for Camel cigarettes. The study’s authors suggested awareness would lead to smoking. Discuss whether awareness always translates to action; be sure to include the two intervening steps, interest and desire. Finally, note that in follow-up studies, preschoolers indicated they understood that cigarettes were adult products, and many were adamant that they would not smoke.

11. Interest After awareness comes persuasion
The customer must want to further investigate the product/service
©2010 Dell Inc All Rights Reserved
Ask students: Other than purchase, what can IMC prompt consumers to do?
Possible answers include behavioral changes (don’t drink and drive), attitude changes (that product is high quality), or physical actions (pick up the phone, log on to the Website, volunteer).
©2010 Dell Inc All Rights Reserved

12. Desire I like it I want it
After the firm has piqued the interest of its target market, the goal of subsequent IMC messages should move the consumer from “I like it” to “I want it.”
blue jean images/Getty Images

13. Action
Purchase is just one type of action… what other actions can IMC ask consumers to take?
Ask students: provide examples of products that they had IMC exposure to, but did not purchase immediately. Then ask students: which IMC exposure moved you to purchase?
©BananaStock/PunchStock

14. The Lagged Effect Advertising does not always have an immediate impact
Multiple exposures are often necessary
It is difficult to determine which exposure led to purchase
Sometimes consumers don’t act immediately after receiving a marketing communication because of the lagged effect —a delayed response to a marketing communication campaign.
©image100/PunchStock

15. CHECK YOURSELF
What are the different steps in the communication process?
What is the AIDA model?
The sender, the transmitter, encoding, the communication channel, the receiver, noise, feedback loop
Awareness, interest, desire, action .

16. Elements of an Integrated Marketing Communication Strategy
Interactive
Personal selling
Sales promotions (e.g., contests)
Direct marketing (e.g., telemarketing)
Direct marketing (e.g., mobile marketing)
Online marketing (e.g., blogs, social media
Offline
Online
Advertising
Sales promotions (e.g., coupons)
Public relations
Direct marketing (e.g., catalogs)
Direct marketing (e.g., marketing)
To get the right message to the right audience through the right medium, an IMC planner must understand how each medium communicates and how to combine it with other media to generate the most impact.
Passive

17. Advertising Most visible element of IMC
Extremely effective at creating awareness and generating interest
Courtesy National Fluid Milk Processor Promotion Board;
Agency: Lowe Worldwide, Inc.
Chapter Eighteen covers advertising, the most visible element of IMC, in depth.
Ask students: Think about how an advertisement has made you aware of or interested in a specific product.
You can use students’ chosen advertisements as the basis for subsequent discussions.
Ask students what “advertainment” might be? It is advertising that is focused on entertaining the end user. One of the earliest and best examples are Reebok’s Terry Tate ads. This YouTube link (always check before class) will show the original ad which was aired on the 2003 Superbowl.
YouTube link:
Terry Tate Office Linebacker

18. Public Relations (PR) “Free” media attention
Importance of PR has grown as cost of other media has increased
Consumers becoming more skeptical about marketing, PR becoming more important
Ask students: Do you view PR as credible, because they are not “advertisements,” or not credible, because they come from the company?
Courtesy Citirx Online, LLC

19. Sales Promotions
Can be aimed at both end user consumers or channel members
Used in conjunction with other forms of IMC
Can be used for both short-term and long-term objectives
Chapter Eighteen covers sales promotion in detail. Remind students that sales promotions can be used in a wide variety of situations to stimulate demand among either end users or other channel members. There are many websites that distribute coupons. This web link is for retailmenot.com, one of the more popular coupon sharing site. Ask students how retailers feel about this. The positive is that they are able to reach price sensitive customers who would otherwise not find them. The problem is that some of these coupons are profitable because the target frequent and large receipt buyers and they are not the kind of person who is downloading from the site.
Courtesy Dole Food Company, Inc.
Retailmenot.com

20. Personal Selling Some products require the help of a salesperson
More expensive than other forms of promotion
Salespeople can add significant value, which makes the expense worth it
Chapter Nineteen covers personal selling, the most costly form of IMC, in detail.
Ask students: For what kind of purchases is personal selling most appropriate? Their answers should note that this form of IMC works best when the purchase is complicated, because the salesperson can customize the communication to meet the needs of that specific buyer and purchase situation, which other IMC elements cannot.
Royalty-Free/CORBIS

21. Direct Marketing Growing element of IMC
Includes and m- commerce
Good for multicultural groups
Database technology improves
Courtesy Global Spec, Inc
As advertising has declined as a percentage of the total communications budget, direct marketing has increased. Ask students: What characteristics of direct marketing might explain this increased popularity? Direct marketing allows marketers to personalize their message. This enables marketers to communicate with an audience that is more likely to respond to their efforts.  The text has some excellent examples of Meijer, Toys “R” Us and Best Buy using m-commerce

22. Adidas
Ask students: How does the sponsorship of athletes benefit firms? How might it harm firms? What can firms do when an athlete they sponsor does something to embarrass the brand?
With a popular athlete, firms stand to gain a lot of sales, but when a star athlete becomes a liability, firms quickly distance themselves and focus on another branding element.
Anthony Saint James/Getty Images

23. Online Marketing Websites Blogs Social Media
McGraw-Hill Companies, Inc. Marker Dierker, photographer.
These will be covered on the next several slides
Ask students: What problems might firms that use text messaging to disseminate marketing communications face?
Answer: There may be a backlash against the firm and the wireless provider if consumer phones are constantly flooded with such messages.
Ask students: How would you like to receive advertising text messages?
Answer: A lot of folks do not want such messages. However, the instant-messaging generation is likely to be much more tolerant about it.

24. Websites What websites do you visit all the time? Why?
Probe to discover why students love these sites…they will say they are easy to use (good navigation), have good sales and specials (product decisions), and are fun (entertainment)

25. What can Southwest learn from their blog?
Blogs
What can Southwest learn from their blog?
Southwest can learn what customers have to say…what they are interested in learning about products, company culture, and new product launches.
Many firms are still experimenting with blogs; in 2006 Wal-Mart got in trouble for failing to disclose a blog written by two cross-country travelers was sponsored by the retailer.
Courtesy Southwest Airlines

26. Social Media
Advantages to firms?
Challenges?
Social media is media content distributed through social interactions. Three major online facilitators of social media are YouTube, Facebook, and Twitter.

27. CHECK YOURSELF What are the different elements of an IMC program?
1. Advertising, sales promotion, public relations and personal selling, electronic media, direct marketing.

28. Planning for and Measuring IMC Success
Understand the outcome they hope to achieve
Short-term or long-term
Should be explicitly defined and measured
Ask students: How do firms determine whether their IMC strategy has worked?
Answer: It depends on the IMC objective. If the objective is to create awareness for a new product, then the firm would measure increases in customer knowledge and awareness. If it were to generate sales, like an ad in the paper, then sales would be the objective measure.
Lawrence Lawry/Getty Images

29. Setting and Allocating the IMC Budget
Objective-and-task method
Rule-of-thumb methods
Many IMC elements require significant expenditures, and firms are reluctant to invest in marketing communications without some guarantee of return.
©Brand X Pictures/PunchStock

30. Rule of Thumb Methods
Ask students: How do you think firms set promotional budgets? How would you set one?

31. Measuring Success Using Marketing Metrics
Frequency
Reach
Gross rating points
Web Tracking
Every communication may be measured in terms of reach and frequency. Remind students that because of the lagged effect, marketers must not only expose the target audience to the message but also ensure that it has multiple opportunities to view it. This combined measure is GRP.
Digital Vision/Getty Images

32. Search Engine Marketing
Clicks
Impressions
Click through rate
Return on investment (ROI)
Ask students what Transit would want to measure if they were buying Google adwords for “sneaker store” and “NYC sneakers”. The metrics are on the following slide
Transit, an upscale sneaker store in New York City modeled after vintage New York City subway trains.

33. Transit Click through results
He can see his total cost in column 3 and the sales from his adwords in column 4. The ROI in column 6 is higher for “sneaker store” due to its lower cost even though the sales were a bit lower. Ask students how else they can use the website for their IMC objectives? Gently lead them to the charts on the following slide…
What does the data tell you?

34. Transit IMC goals and results
Ask students why this was important for Transit. They should comment that the click throughs tell us nothing about the attitude, only the actions of the consumer

35. Swiped ID Theft in America
Ask students if they are nervous to buy online? Have any of them ever had a problem with online theft?
Note: Please make sure that the video file is located in the same folder as the PowerPoint slides.

36. CHECK YOURSELF
Why is the objective-and-task method of setting an IMC budget better than the rule-of-thumb methods?
How do firms use GRP to evaluate the effectiveness of traditional media?
How would a firm evaluate the effectiveness of its Google advertising?
The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.
When measuring IMC success, the firm should examine when and how often consumers have been exposed to various marketing communications. Marketing communications managers usually state their media objectives in terms of GRP, which represents reach multiplied by frequency (GRP = reach * frequency).
Using Google AdWords, a firm can assess the effectiveness of his advertising expenditures by measuring the reach, relevance and return on investment for each of the keywords that were used.

37. Glossary
Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures.
Clicks, as in mouse clicks, are used to assess the effectiveness of advertising expenditures.

38. Glossary
The click through rate (CTR) is the number of clicks divided by the number of impressions.
The click through rate (CTR) is the number of clicks divided by the number of impressions.

39. Glossary
The frequency of exposure is how often the audience is exposed to a communication within a specified period of time.
The frequency of exposure is how often the audience is exposed to a communication within a specified period of time.

40. Glossary
Gross rating points (GRP) represents reach multiplied by frequency.
Gross rating points (GRP) represents reach multiplied by frequency.

41. Glossary
The number of impressions is the number of times an ad appears in front of a user.
The number of impressions is the number of times an ad appears in front of a user.

42. Glossary
The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.
The objective-and-task method determines the budget required to undertake specific tasks to accomplish communication objectives.

43. Glossary
Online couponing is a promotional Web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store.
Online couponing is a promotional Web technique in which consumers print a coupon directly from a site and then redeem the coupon in a store.

44. Glossary
Online referring is when consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest.
Online referring is when consumers fill out an interest or order form and are referred to an offline dealer or firm that offers the product or service of interest.

45. Glossary
Reach is the percentage of the target population exposed to a specific marketing communication at least once.
Reach is the percentage of the target population exposed to a specific marketing communication at least once.

46. Glossary
The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost.
The return on investment (ROI) is the difference of the sales revenue and the advertising cost divided by the advertising cost.

47. Glossary
Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget.
Rule-of-thumb methods use prior sales and communication activities to determine the present communication budget.

48. Glossary
Social media is media content distributed through social interactions.
Social media is media content distributed through social interactions.

49. Glossary
Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view.
Web tracking software indicates how much time viewers spend on particular Web pages and the number of pages they view.